Policies

   1, Up on the day an enterprise is ratified, it will enjoy a reduced rate of 15% instead of due income tax, and those that makes export over 70% of its production value will enjoy a further reduced tax rate of 10%.

   2, High and new - tech enterprises will be exempted for income tax fro 2 years since Production-starting-year; for those newly invested enterprises by foreigners with operation term over 10 years will be exempted for income tax for the first and second year after it starts to make profit 2 years, and it will be cut half for income tax for the 3rd till 5th year; should tax rate be lower than 10%, a least levitation of 10% will be exercised.

   3, Projects using high and new - tech upon date of conformation, will be backed up with exclusive finance for making up its local tax, business tax and value added tax. Those that have own knowledge property, in addition will enjoy the half-cut down for the item for the 6th, 7th and the 8th year.

   4, Instruments, equipment used by high and new - tech development can be depreciated quicker in 4 years' time.

   5, Foreigner invested enterprise is exempted for local tax, city real estate tax for 5 years and 10 years for expert enterprises and technology - advanced enterprises.

   6, Income tax is exempted for those that are engaged in technology transfer, technical consultation and other technical services with a maximum net income of 300 thousand RMB yearly, in case of more, the surpassed part will be levied with respective tax rate; projects that belong to the 'Torch Projects' of the state and hi-tech product development planned by the state will be exempted or deducted for the items.

   7, Import and purchase of equipment, spare parts under contract for producing product specified by 《Catalogue of Hi-Tech Products by the State》and excluded by promulgation- State [ 1997 ] 37 《None Duty-Free Goods for Inland Investment Projects》will be exempted for custom duty.

   8, Introduction of advanced technology that is listed in the 《Catalogue of Hi-Tech Products by the State》 will be exempted for custom duty after cost for software is paid to the concerned abroad under contract.

   9, For export products that are listed in the 《Catalogue of Hi-Tech Products for Export by the State》a trawl back of the paid tax will be given at the due tax rate after product has been exported with approval from state tax bureau.

   10, A 'Backup Fund for New & Hi - Tech Projects Zone.